Hapag-Lloyd and UASC complete merger, focus on integration

The merger was completed in Hamburg on Wednesday some 10 months after the business combination agreement (BCA) was signed between the two container lines. The merger was originally slated for completion on 31 March 2017 but ran it complexities in terms of documentation pushing the deadline back to 31 May.

The merged company will be the world’s fifth largest container line with 230 vessels with a total capacity of 1.6m teu.

With the merger Qatar Investment Authority and the Public Investment Fund of Saudi Arabia have become key shareholders in Hapag-Lloyd with 14.4% and 10.1% stakes respectively.

With the merger Hapag-Lloyd will be adding a fifth region to its global structure with a regional headquarters in the Middle East.

“We now not only have a very strong market position in Latin America and the Atlantic, but also in the Middle East, where we will become one of the leading carriers. Our priority now is a smooth and fast integration of UASC and Hapag-Lloyd,” said Rolf Habben Jansen ceo of Hapag-Lloyd.

The company plans to start integrating 118 Hapag-Lloyd services with the 45 services of UASC in eight weeks time through to the end of the third quarter.

Hapag-Lloyd aims to achieve annual synergies of $435m from the merger.

“Hapag-Lloyd has long-term and extensive know-how when it comes to acquisitions. By merging with the Canadian shipping company CP Ships in 2005 and, more recently, with CSAV in 2014, we have demonstrated that we are able to combine businesses and integrate them quickly, efficiently and profitably,” said Habben Jansen. “We are optimistic that we will be able to complete the integration of UASC by the end of this year.”

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